By Scott Wright

THE fall-out from the coronavirus crisis has sparked a big rise in the number of new businesses being set up in Glasgow, a new report has found.

Financial hardship and uncertainty over jobs have been cited in research which reveals more than 400 of the 6,166 new businesses in 2020 were set up by Glaswegians on furlough.

The number of registrations by people who had been made redundant leapt to by one-third to 987, “signalling a wave of enforced entrepreneurs,” according to the Boom or Bust report from The Accountancy Partnership.

Around 860 businesses, representing 14 per cent of new registrations, were borne from a need for an extra source of income, the report found.

Lee Murphy, managing director of The Accountancy Partnership, said: “Starting a business is notoriously difficult, even in normal times, so it was somewhat unexpected to see new businesses in their hundreds of thousands being set up last year.

“Our research shows that many lockdown entrepreneurs saw creating their own business as their only option after being made redundant or facing other financial troubles, but the statistic of those fulfilling longer-term dreams of owning a business is hugely encouraging.

“It means that even businesses launched out of necessity have people behind them with a genuine desire to be business owners. This enthusiasm will help fledgling businesses thrive despite the adverse circumstances of their inceptions.”

The number of “side-hustles” leapt by 40%, the report found, with people having more time on their hands because of “restrictions, isolation and furlough” stemming from the pandemic.